Why and for Whom?
People often make decisions against their own best interests. This is particularly evident in the way they manage their money. About 30% of British people have no more than 1000 pounds in savings, and 4 million have no savings at all and therefore no chance to react to unexpected costs. We found out that unexpected costs were the major barrier to savings.
And what's worse? Gen-Z, don't believe in pensions! They instead desire higher returns. However, there is a strong desire to save, with many looking at their first job as the point when they start to save. Hence, this phase of transition to work was identified as our focus point, to embed the change, and avoid mistakes of previous generations.
Since our focus was on behavioural factors leading to money management, we dived deeper into the mindset of generation-Z. From our understanding, there are two different behaviour patterns for those who want to save and are saving too little. Amongst the people who do not save money or struggle to save, we found two behaviours. The first were people who consciously recognised their struggle to save, and the others were those who recognised that they did not save very well but did not recognise the struggle associated with savings.
For people who start to work, we caught two golden insights here: one is they are experiencing the transition, which is a perfect opportunity to change behaviours; the other one is the desire for financial independence, which can be the potential motivation of saving money because emergency saving is recognised as a symbol of financial independence.